Australia is set to continue reducing its net migration under the leadership of Prime Minister Anthony Albanese, following the Labour Party’s re-election. This move will have significant implications across several visa categories—especially under the newly introduced ‘Skills in Demand’ program. While there are no current plans to cap international student numbers, the government is signalling higher visa fees and stricter application processes.
India’s Migration Numbers See a Decline
India remains the second-largest migrant group in Australia, following the UK. As of June 2023, there were 845,000 Indian-born residents in the country—up from 378,000 a decade earlier, according to the Department of Home Affairs.
Despite the growing community, the 2023–24 period saw:
- A 50% drop in student visa grants to Indian nationals (50,516, down from 102,696 in 2022–23)
- A decline in skilled worker visas from 27,402 to 18,397
- A reduction in temporary visa grants to Indian citizens from 584,000 to 413,000
One bright spot: 49,848 Indians were granted permanent residency, marking a 21% year-on-year increase.
Australia’s New Migration Strategy
The Labour Government’s 10-year migration strategy is central to its reform agenda, aiming to reduce net migration to:
- 250,000 in 2024–25
- 255,000 in 2025–26
- 235,000 in 2026–27
According to Mike Wall, Managing Director of Gateway Immigration Solutions, immigration policy was a key election issue. “Albanese’s approach is more balanced, focusing on sustainable migration levels and tightening visa processes.”
Focus Shifts to High-Skilled Migration
Australia’s ‘Skills in Demand’ visa, introduced in December 2023, is designed to attract skilled workers while curbing low-skill migration. Key changes include:
- Higher income thresholds effective July 1, 2025:
- Core Skills Pathway: AUD 76,515 (up from AUD 73,150)
- Specialist Skills Pathway: AUD 141,210 (up from AUD 135,000)
The Core Skills Occupation List—which defines eligible jobs—is also set for revision.
Teresa Liu, Managing Partner at Fragomen Australia, commented: “With Labour’s re-election, we expect the current reform trajectory to continue. For businesses and skilled workers, the time to plan is now.”
Visa Processing Delays Cause Concern
Despite promises of fast-track processing, applicants are experiencing lengthy delays:
- Skills in Demand visa processing has stretched to 46–84 days, far exceeding the promised 7–14 days
- Subclass 482 Temporary Skill Shortage visas are taking 6–9 months
- Employer-sponsored permanent visa applications can now take up to 18 months
Wall added, “The government must act quickly to streamline processing or risk losing talent to other countries.”
International Student Visas: Higher Fees and Stricter Scrutiny
Australia has already increased the Subclass 500 (Student) visa fee from AUD 710 to AUD 1,600, with further hikes likely by July 2025. The fee could rise to AUD 2,000, making it one of the most expensive student visa programs in the world.
Despite the rising costs, India continues to be a top source of international students. According to the Department of Education:
- 139,000 Indian students were enrolled in 2024
- Up from 126,000 in 2023
However, stricter English language requirements, financial proof thresholds, and Genuine Student (GS) criteria are making the student visa process more competitive.
Labour Market Testing Reforms Unlikely
While businesses hope for more flexible labour market rules, Teresa Liu believes this is unlikely. “Given the Labour Government’s ties to trade unions and its strong focus on protecting local jobs, reforms that remove labour market testing requirements may not materialise,” she said.
What This Means for Indian Migrants and Students
Australia remains a top destination for Indian students and skilled professionals, but recent policy changes are reshaping the migration landscape:
- Visa fees are rising
- Processing is slower
- Requirements are stricter
- Permanent migration pathways are fewer and more competitive
Key Takeaways
- Plan visa applications well in advance
- Budget for increased costs
- Consult registered migration agents
- Stay informed about changes to visa policies and occupation lists
- Explore scholarships and employer-sponsored opportunities
Stay Updated
With migration policies rapidly evolving, staying informed is essential. Follow updates on:
- Student and skilled visa changes
- Post-study work rights
- Permanent residency reforms
- Employer-sponsored migration programs
